Once events are recorded in the general journal, the
effects on the accounts are organized in one place called the general ledger.
Data from the general journal are transferred to the general ledger through a
very simple process called posting. When data from a journal entry are posted
to the general ledger, that data simply updates the appropriate general ledger
accounts. For example, recall the October 3 entry in which cash was debited for
$1,300 and accounts receivable was credited for $1,300. This entry would be
posted to the general ledger by entering a $1,300 debit to the general ledger
cash account and entering a $1,300 credit to the accounts receivable account.
As an example of information contained in a general ledger, the cash page from
the Guitar Lessons Corporation's general ledger is shown below.

Guitar Lessons
Corporation
General Ledger

Account Name: Cash

Account Number:
111

Date

Item

Post.
Ref.

Debits

Credits

Balance
Debits

Balance
Credits

Oct. 1

Balance

9,120

3

Receivable collection

J1

1,300

10,420

13

Services provided

J1

1,100

11,520

19

Payable payment

J1

550

10,970

26

Dividend payment

J1

90

10,880

31

October wages

J1

600

10,280

Note the October 3 $1,300 debit to cash in the
general ledger cash page above. The $1,300 was posted (transferred) from the October
3 general journal entry to the cash page in the general ledger. In a similar
manner, all other debits and credits from the general journal would be posted
to the general ledger, updating all the general ledger accounts. As a result of
the posting process, all the events that affected the Guitar Lessons
Corporation's accounts are summarized in one place, the company's general
ledger. In simplified T account form, the Guitar Lesson Corporation's general
ledger, after all October journal entries were posted, is shown below.

Guitar Lessons Corporation
General Ledger
October 31

Cash

Accounts Receivable

Supplies

$9,120

$1,300

$575

$1,300

$550

$1,200

$1,300

$400

$450

$1,100

$90

$1,200

$525

$600

$10,280

Accounts Payable

Common Stock

Retained
Earnings

$550

$7,000

$3,445

$550

$400

$7,000

$3,445

$400

Dividends

Fees Revenue

Supplies
Expense

$90

$1,100

$450

$90

$1,200

$450

$2,300

Wages Expense

$600

$600

Note in the above general ledger that the balance in
each T account was calculated as the difference between the total debits and
total credits. For example, the $525 debit balance in supplies was calculated
by adding the two debits ($575 + $400) and subtracting the one credit ($450).